Hotel booking scenery is ready for a shake-up. According to Skift Research's latest hotel distribution outlook, direct digital channels are set to uphold online travel agents (OTAs) by 2030 as the primary distribution method for hoteliers. The forecast sparked fierce industry debate over the future relationship between hotels and OTAs.
To explore these changing dynamics, we spoke with Jaques Coetsee, Group Director of Sales and E-commerce, and Jadine Venter, Marketing Director at Bon Hotels. They provide insight into plans to take advantage of these evolving opportunities by focusing on in-person bookings, personalized guest experiences, and strategic marketing initiatives.
Q: Will the recent changes to online booking spaces have a particular impact on hotels like the Bon Hotel?
Jaques: The big shift is in adjusting the commission structure of Airbnb and Booking.com. Rate parity rulings that require all platforms to maintain the same rate are no longer available. This is a great opportunity. Our direct bookings have always been our cheapest channel and this change will allow us to offer better deals directly to our guests than our OTA platform. This gives small hotels a fair opportunity to retain more value from each booking.
Jadine: It's freed up because it offers flexibility to set rates that were previously impossible due to the bases that OTA had in market power and reach. This shift will ultimately ensure that small hotel groups like us compete effectively by highlighting the added value they offer not only prices but also personalized services they offer directly. can. It's an exciting reform at the arena for all of us.
Q: How does Bon Hotel's second strategy fit into your approach amid these changes?
Jadine: Our “second stay strategy” utilizes OTAs as a tool for first guest acquisitions and turns those guests directly into bookers for future stays. We focus on building relationships from our first visit, and we can ensure that guests see the benefits of booking in person with us in the future. It is to translate your first stay into a long-term guest relationship.
Jaques: Training is really important. Our staff are skilled at coordinating guest profiling and experiences from initial interactions. By providing a highly personalized experience during their first stay, we build loyalty and direct bookings for the future. This strategy uses its first OTA reservation as a stepping stone to enhance direct engagement with guest loyalty.
Q: Are you using data and technology to improve your direct booking strategy?
Jadine: Technology is an enabler for us. That's why I chose Profitroom as my booking engine. This allows you to communicate effectively with your guests and provide upselling and additional services that enrich the experience before you arrive. It's not just about getting a room. It's about personalizing their entire stay.
Jaques: In addition to making a reservation, these tools allow you to trigger automated communications, including reminders such as check-in, dining options, and special amenities available during your stay. This personalization ensures that guests feel valuable even before they arrive. This supports the efforts that the OTA simply cannot match and maintain a personal touch.
Q: What are the unique benefits South African hotels like the Bon Hotel have over OTAs when it comes to providing a guest experience?
Jaques: The outstanding advantage is that it offers authentic South African cultural experiences and personal guest interactions. The OTA lacks a ground presence and personal touch that allows us to be highly prioritized and intimate and careful engagement with our guests.
Jadine: Booking directly with us supports our local economy and keeps us more money in South Africa. This allows us to continuously invest in community projects, staff and service standards that improve the guest experience and maintain high standards within the hospitality sector.
Q: How can I improve the guest experience for my staff?
Jadine: Staff authority is essential and requires proper training to identify upselling opportunities and provide tailored services. In particular, front office teams must be proficient at recognizing and responding to guest profiles.
Jaques: Have staff resources and autonomy to make real-time decisions. All staff are crucial to deliver brand promises and ensuring that each interaction turns into a memorable guest experience opportunity.
Q: Some travelers are hesitant to book directly due to the OTA advantage. What is your message for them?
Jadine: By booking directly, travelers not only ensure the best rates, but also support local businesses. It's more than just a transaction. Bookings with us guarantee a high level of service and rich experience from initial interaction to check-out.
Jaques: Direct bookings create stronger connections with guests. By maintaining revenue within the community, it enables direct communication and customization of services that support the local economy. It improves the overall travel experience and benefits both the traveller and the local economy.
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